The Automobile and American Life: The Dynamic Nature of the Import Automobile Market in the U.S., 1963-74

1963 Toyota Crown

1969 Toyota Corona

1974 Toyota Corolla

The American Automobile Industry experienced several historic inflection points between the middle of the 1960s and the end of the 1970s. One happened in the mid-1960s when government took on the role of regulator, both in terms of emissions and and safety. Another took place at the end of the 1960s when consumers decidedly began to prefer foreign cars, a shift anticipated between 1958 and 1960 but then evaporated to a degree after the Detroit import fighters entered the marketplace (Corvair, Falcon, Valiant). Foreign cars were attractive because they were different; often innovative with front drive and rear engine configurations; and finally they were not often subject to planned obsolescence. A third inflection point and certainly a most significant one took place beginning in October, 1973, with Oil Shock I. And then the second Oil Shock in 1979-80 catalyzed a new order in the global automotive business.

Note the table below, and the impact that Oil Shock I had on the import market. Everyone lost, but some were far bigger losers than others. VW sales had flattened before late 1973, the consequence of too much air cooled Beetle and not enough new product lines. Opel, Volvo, British Leyland, and Mercedes-Benz also experienced little growth at the end of the era, but M-B would emerge with a true niche luxury brand, as exemplified by the 450 SL that was so popular in California. And Japan, despite a modest 1974 decline, was rising fast on the scene (except note the conspicuous absence of Honda).

Import U.S. Sales by years, 1962-1972 (includes cars, tourist deliveries, trucks)

Mfr.	1974	1973	1972	1968	1963
VW	336,257	480,602	491,742	427,694	278,549
Toyota	269,376	326,844	311,770	130,044	1,096
Datsun	245,273	319,007	268,666	---	---
Capri	75,260	113,069	91,995	---	---
Opel	59,279	68,400	69,407	84,680	176
British Leyland	54,870	65,948	68,641	58,616	55,776
Mazda	75,709	119,004	62,818	----	---
Fiat	72,129	58,447	58,375	30,521	---
Volvo	53,043	60,761	57,772	38,826	14,188
M-B	38,826	42,405	41,998	24,553	11,204